Exemplary benefits of ERP implementation

Investing in an ERP system like any other investment should include your pros and cons. Of course, the cost and commitment of the company and its employees is a downside. Plus, there are benefits to be gained from implementing an ERP system. Every business can have their own expected benefit list. The following list may also be used to designate the so- Return on investment (ROI). Of course, to calculate the mathematical ROI, you need to determine the initial indicators, such as what is the cost of distribution now or what is the delivery date. Because most companies do not use such indicators, it is difficult to calculate the actual ROI. You can, however, determine the expected overall benefits of the ERP system:

Reduction of material costs (purchasing optimization):

Reduction of labor costs and production costs:

1) Improve production efficiency 2) Reduce overall production costs 3) Reduce material costs 4) Improve production quality 5) Improve the availability of raw materials 6) Extend the “lifetime” of the tools 7) Reduce the number of manufacturing defects 8) Improve the availability of raw materials for production 9) Reduction of employee overtime 10) Increase the productivity of machines and production lines 11) Reduced labor-intensive scheduling of production

Improve customer service and increase sales:

1) Improve order accuracy and increase delivery on time 2) Improve accuracy of forecasts 3) A more effective pricing and promotion strategy 4) Improvement of delivery according to the specific expectations of customers 5) Improve the efficiency of sales departments 6) Reduce order handling time 7) Reduce the number of phones needed to complete orders 8) Improve the availability of products for sale

Increasing the level of accounting control:

1) Improved time and cost of data consolidation 2) Improved control of receivables and liabilities 3) Improve staff productivity 4) Better support for decision-making based on economic data 5) Reduce closing time of accounting periods 6) Reduce the number of employees 7) Increase in the number of discounts paid for early payment 8) Reduced repayment time